Frequently Asked Depreciation Questions
Updated: Sep 24
Our tax depreciation schedule helps property investors unlock tax deductions available to them. Claiming depreciation is a significant benefit that many investment property owners are unaware of. Archi-QS answers your most Frequently Asked Depreciation Questions.
1. I have owned an investment property for years, but I was unaware of deductions available, what can I do?
A depreciation schedule covers 40 years’ worth of depreciations, which means that you may have decades left to depreciate on your investment property. Additionally, the ATO allows any property investor to back claim tax depreciations for up to 2 years.
2. How often should I update my Tax Depreciation Schedule?
You only need to get a Tax Depreciation Schedule once for each investment property. However, if you make significant upgrades to your property, you should look into updating your schedule.
3. What is low value pooling?
Low-value pooling is a method of depreciating plant items at a higher rate to maximise deductions. Low-cost assets and low-value assets can be allocated into this pool to maximise your cash return.
4. When does a depreciation asset start to decline in value?
An asset starts to decline from the moment it is first used or installed ready for use.
5. When can I claim depreciation for substantial renovations that I have carried out over the course of some years?
When it is reasonable to say that substantial renovations have been completed. This applies regardless of whether the renovations were undertaken over the course of some years.
6. Do Tax Depreciation Schedules follow the investment property in the case of a sale?
No, a Tax Depreciation Schedule is personalised to the individual property investor.
7. Can I claim depreciation on property that I haven’t yet rented out?
You are able to claim depreciation on your investment property from the settlement date as long as they are genuinely available for rent i.e. the property is advertised and has gained a broad exposure to potential tenants, and the tenants are reasonably likely to rent the property.